SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
F O R M 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of August, 2006
TRINITY BIOTECH PLC | ||
(Name of Registrant) | ||
IDA Business Park Bray, Co. Wicklow Ireland |
||
(Address of Principal Executive Office) |
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F Form 40-F
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No
If Yes is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-
TRINITY BIOTECH PLC
6-K Item
Press Release dated August 9, 2006
FOR RELEASE, August 9, 2006 | |
Contact: | Trinity Biotech plc Rory Nealon (353)-1-2769800 E-mail: rory.nealon@trinitybiotech.com |
Trinity Biotech Announces Quarter 2 Results
Revenues increase 20.3% and Profits increase 95%
DUBLIN, Ireland (August 9, 2006) . Trinity Biotech plc (NASDAQ: TRIB, ISE:TRIB.I) ), a leading developer and manufacturer of diagnostic products for the point-of-care and clinical laboratory markets, today announced results for the quarter ended June 30, 2006.
Revenues in quarter 2, 2006 increased 20.3% to US$27.3 million compared to US$22.7 million in quarter 2 2005. During the same period operating profit before share option expenses increased from US$1.69 million to US$2.34 million before the impact of the once off inventory write off of US$5.8 million. Profit for the period increased from US$1.08 million in quarter 2 2005 to US$2.11 million before the inventory write off in quarter 2 2006, representing an increase of 95%.
Revenues for the six months by key product area were as follows :
H1 2005 | H1 2006 | ||
US$000 | US$000 | % Increase | |
Clinical Chemistry* | 3,043 | 7,502 | 146.6% |
Haemostasis | 14,399 | 14,782 | 2.7% |
Infectious Diseases | 20,179 | 21,027 | 4.2% |
Point of Care | 6,147 | 8,716 | 41.8% |
Total | 43,768 | 52,027 | 18.8% |
* Primus acquired in July 2005
Revenues for the six months by geographical location were as follows :
H1 2005 | H1 2006 | ||
US$000 | US$000 | % Increase | |
USA | 21,808 | 24,948 | 14.4% |
Europe | 11,894 | 14,274 | 20.0% |
Asia / Africa | 10,066 | 12,805 | 27.2% |
Total | 43,768 | 52,027 | 18.8% |
Gross profit for the quarter before the inventory write off amounted to US$13.16 million, representing a gross margin of 48.2%. This compares to a gross profit of US$10.71 million and gross margin of 47.2% for the same period in 2005. The once off inventory write off of US$5.8 million is primarily attributable to the discontinuation of various product lines following the acquisition of the bioMerieux haemostasis business in June.
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R&D expenses have increased from US$1.31 million in quarter 2 2005 to US$1.59 million in quarter 2 2006. The increase in selling, general and administrative expenses from US$7.80 million in 2005 to US$9.31 million in the current year is primarily attributable to the impact of the acquisition of Primus in July 2005.
The net effect of the above was an operating profit before share options and the once off inventory write off of US$2.34 million for the quarter compared to US$1.69 million for the quarter 2 2005 which represents a margin of 8.6% and 7.4% respectively.
Commenting on the results, Rory Nealon, Chief Financial Officer, said Quarter 2 has been an eventful quarter for Trinity. We completed a US$25 million equity fund raising in April which was oversubscribed and which included a US$2 million participation by our CEO, Ronan O Caoimh. We completed the acquisition of the haemostasis business of bioMerieux which was partly funded by a new US$30 million debt facility. As part of the acquisition Trinity acquired inventory, tangible fixed assets and intangible assets including goodwill totalling approximately US$46 million. This is based on our preliminary estimate of the fair value of the assets acquired, the finalisation of which will be completed in the coming months.
Our financial performance during the quarter has been impressive in that we have experienced strong growth in both revenues and profits versus the comparable period in 2005 and Quarter 1 of this year. Our EBITDA for the quarter has also exceeded US$3.5 million for the first time.
Ronan OCaoimh, CEO commented, We are particularly pleased that we have completed the acquisition of the haemostasis product line from bioMerieux during the quarter. This acquisition is our largest to date and will, we believe, be transformational for Trinity. The combination of our existing Biopool and Amax haemostasis businesses together with the acquired bioMerieux business gives us a full range of state of the art instruments with an excellent range of both routine and specialty diagnostic tests to accompany them.
Given this combination and the scale achieved through the increased customer base in the U.S., Germany and the U.K. where Trinity has existing direct salesforces in place, we will benefit from considerable and immediate synergies in these markets. We expect the acquisition to be immediately earnings accretive and to increase our haemostasis market share from 4% to 13%.
We have also settled our legal dispute with Inverness Medical. Under the terms of the settlement Inverness has granted Trinity a royalty bearing licence to its lateral flow patents for all diagnostic uses with the exception of womens health and cardiology, including an Over the Counter (OTC) license for Trinitys Unigold HIV products. In addition, Inverness has agreed to manufacture Trinitys Unigold HIV tests primarily for the African market in its new facility in Hangzhou, China, and will reimburse Trinity for its costs of litigation.
We are pleased to have settled this litigation and to have obtained a licence which covers the potentially substantial HIV OTC market in the USA. We believe that the combination of our platform Unigold technology, as proven with our HIV products, and the broad licence from Inverness will enable us to develop a substantial and vibrant point of care business.
Forward-looking statements in this release are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties including, but not limited to, the results of research and development efforts, the effect of regulation by the United States Food and Drug Administration and other agencies, the impact of competitive products, product development commercialisation and technological difficulties, and other risks detailed in the Companys periodic reports filed with the Securities and Exchange Commission.
Trinity Biotech develops, acquires, manufactures and markets over 500 diagnostic products for the point-of-care and clinical laboratory segments of the diagnostic market. The broad line of test kits are used to detect infectious diseases, sexually transmitted diseases, blood coagulation disorders, and autoimmune diseases. Trinity Biotech sells worldwide in over 80 countries through its own salesforce and a network of international distributors and strategic partners. For further information please see the Companys website: www.trinitybiotech.com.
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Trinity Biotech plc
Consolidated Statements of Income
(US$000s except share data) | Three Months Ended June 30, 2006 (unaudited) |
Three Months Ended June 30, 2005 (unaudited) |
Six Months Ended June 30, 2006 (unaudited) |
Six Months Ended June 30, 2005 (unaudited) |
|||||||||
Revenues | 27,314 | 22,712 | 52,027 | 43,768 | |||||||||
Cost
of sales |
(14,133 | ) | (11,973 | ) | (26,333 | ) | (22,808 | ) | |||||
Cost
of sales inventory write off |
(5,800 | ) | | (5,800 | ) | | |||||||
Cost
of sales share based payments |
(24 | ) | (24 | ) | (50 | ) | (52 | ) | |||||
Gross
profit |
7,357 | 10,715 | 19,844 | 20,908 | |||||||||
Gross
profit before inventory write off |
13,157 | 10,715 | 25,644 | 20,908 | |||||||||
Other
operating income |
61 | 62 | 121 | 126 | |||||||||
Research & development
expenses |
(1,592 | ) | (1,314 | ) | (2,957 | ) | (2,680 | ) | |||||
S,G&A
expenses |
(9,308 | ) | (7,799 | ) | (18,560 | ) | (15,298 | ) | |||||
Indirect
share based payments |
(241 | ) | (330 | ) | (585 | ) | (659 | ) | |||||
Operating
profit / (loss) |
(3,723 | ) | 1,334 | (2,137 | ) | 2,397 | |||||||
Operating
profit before inventory write off |
2,077 | 1,334 | 3,663 | 2,397 | |||||||||
Financial
income |
311 | 117 | 465 | 230 | |||||||||
Financial
expenses |
(400 | ) | (222 | ) | (742 | ) | (461 | ) | |||||
Net
financing costs |
(89 | ) | (105 | ) | (277 | ) | (231 | ) | |||||
Profit
/ (Loss) before tax |
(3,812 | ) | 1,229 | (2,414 | ) | 2,166 | |||||||
Income
tax (expense) / credit |
1,700 | (146 | ) | 1,542 | (244 | ) | |||||||
Profit
/ (Loss) for the period |
(2,112 | ) | 1,083 | (872 | ) | 1,922 | |||||||
Profit
for the period before inventory write off |
2,115 | 1,083 | 3,355 | 1,922 | |||||||||
Earnings
per ADR |
(11.7 | ) | 7.5 | (5.2 | ) | 13.4 | |||||||
Earnings
per ADR before inventory write off |
11.7 | 7.5 | 20.1 | 13.4 | |||||||||
Diluted
earnings per ADR |
(11.7 | ) | 7.5 | (4.1 | ) | 13.4 | |||||||
Diluted
earnings before inventory write off |
11.4 | 7.5 | 19.6 | 13.4 | |||||||||
Weighted
average no. of shares used in computing earnings per share |
72,186,336 | 57,714,081 | 66,853,745 | 57,366,295 |
The above financial statements have been prepared in accordance with the principles of International Financial Reporting Standards and the Companys accounting policies but does not constitute an interim financial report as defined in IAS34 (Interim Financial Reporting).
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Trinity Biotech plc
Consolidated Balance Sheet
December 31, 2005 US$ 000 |
June 30, 2006 US$ 000 (unaudited) |
||||||
ASSETS |
|||||||
Non-current
assets |
|||||||
Property,
plant and equipment |
19,202 | 21,694 | |||||
Goodwill
and intangible assets |
85,197 | 118,956 | |||||
Deferred
tax assets |
3,277 | 6,331 | |||||
Other
assets |
61 | 61 | |||||
Total
non-current assets |
107,737 | 147,042 | |||||
Current
assets |
|||||||
Inventories |
36,450 | 37,642 | |||||
Trade
and other receivables |
20,885 | 35,712 | |||||
Income
tax receivable |
649 | 395 | |||||
Financial
assets restricted cash |
9,000 | 17,000 | |||||
Cash
and cash equivalents |
9,881 | 3,037 | |||||
Derivative
financial instruments |
| 124 | |||||
Total
current assets |
76,865 | 93,910 | |||||
TOTAL
ASSETS |
184,602 | 240,952 | |||||
EQUITY
AND LIABILITIES |
|||||||
Equity
attributable to the equity holders of the parent |
|||||||
Share
capital |
830 | 957 | |||||
Share
premium |
124,227 | 148,023 | |||||
Retained
earnings |
6,280 | 6,041 | |||||
Translation
reserve |
(1,622 | ) | (703 | ) | |||
Other
reserves |
3,903 | 4,046 | |||||
Total
equity |
133,618 | 158,364 | |||||
Current
liabilities |
|||||||
Interest-bearing
loans and borrowings |
7,720 | 9,374 | |||||
Convertible
notes interest bearing |
7,203 | 5,463 | |||||
Income
tax payable |
260 | 1,587 | |||||
Trade
and other payables |
12,768 | 14,729 | |||||
Other
financial liabilities |
3,707 | 3,208 | |||||
Derivative
financial instruments |
44 | | |||||
Provisions |
199 | 100 | |||||
Total
current liabilities |
31,901 | 34,461 | |||||
Non-current
liabilities |
|||||||
Interest-bearing
loans and borrowings |
10,369 | 37,029 | |||||
Convertible
notes interest bearing |
1,836 | | |||||
Other
tax payable |
48 | 52 | |||||
Other
payables |
102 | 2,593 | |||||
Deferred
tax liabilities |
6,728 | 8,453 | |||||
Total
non-current liabilities |
19,083 | 48,127 | |||||
TOTAL
LIABILITIES |
50,984 | 82,588 | |||||
TOTAL
EQUITY AND LIABILITIES
|
184,602 | 240,952 | |||||
The above financial statements have been prepared in accordance with the principles of International Financial Reporting Standards and the Companys accounting policies but does not constitute an interim financial report as defined in IAS34 (Interim Financial Reporting).
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
TRINITY BIOTECH PLC | ||
(Registrant) | ||
By: | /s/ Rory Nealon | |
Rory Nealon | ||
Chief Financial Officer and Secretary |
Date: August 14, 2006
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